Michigan’s Economic Future
Significant Economic Trends
The Industrial structure of the economy of Michigan is identified by Dr. Ballard as one of the significant trends in the stated economy (Ballard, 2010). In this case, a greater emphasis is provided to the decline of a long-term nature when it comes to the automobile industry and the manufacturing sector. Michigan has in the past undertaken manufacturing to a larger extent as compared to any other state. Hence, the decline in the relative significance of the manufacturing sector seems to be the epic of several economic problems that Michigan encounters. Bullard goes ahead to identify the employment and unemployment trends in this state. Michigan seems to have poor ranks within the labor market in the past decade. In addition, another identified economic trend is income. Michigan per capita income seemed to grow substantially within the twentieth century just after the inflation adjustment. Currently, the per capita income appears doubled even after the inflation adjustment (Ballard, 2010). The last identified trend is the economic connections that Michigan as a single state has with the whole nation. The citizens within Michigan become prosperous due to the closely interconnected economies of other states with that of Michigan.
Effect of the Trends
Looking at the Industrial structure of Michigan, its decline has brought to the state an economic slowdown. The decline of the automobile and the manufacturing wings led to the decline of the number of jobs that can be created per a given period. Instead, there seemed to be the retrenchment of the already existing workers to enable the firms to break even. This brought about an increased dependence on the other states. With regard to the issues of employment, each day, a citizen working within Michigan seems to be losing a job. However, this does not happen throughout the state, and some of its regions absorb back into the employment system, the number that has just become retrenched from the other regions of the state (Ballard, 2010). With regard to incomes, Michigan has of late experienced a bit less rapid growth rate, as one would compare it to the other states within the U.S. However, for a greater part of the past three decades, the incomes realized by Michigan tend to hit below the United States’ average. The residents within Michigan that have higher income have in the last three and half decades experienced a rapid growth in their income, while the residents that earn lowly or a middle-level income have watched their incomes decline or remain constant.
Other Economic Factors
Among the other factors is the net population migration (Ballard, 2010). The population net migration of Michigan in the last decade emerged to be the worst within the United States having recorded a loss of people to a tune of 554, 374 (Ballard, 2010). Net migration could be described as the difference in persons leaving one state relative to the persons who migrate to a given state over a stated period. The growth of real gross state product (GSP) could be viewed as another contributory factor. Michigan’s GSP within 1998 to 2011 lagged the United States’ national average. While the economy of the nation over the thirteen-year period grew by almost 71.5 percent, the economy of Michigan managed to record an economic growth of only 26.5 percent.
Dr.Bullard considers people to be the most significant asset that the state Michigan has (Ballard, 2010). When discussing the human resources within Michigan, Dr. Bullard integrates the aspects of the labor force population including the education system within this state. Having a population that accounts to 9.97 million, Michigan has been ranked as number 8 among the states within the U.S. According to history, the population of Michigan has had a substantial population growth over a long period. Its growth rate has however, over a period been discovered to be uneven. The booming of the manufacturing economy of Michigan in the past decades became greatly associated with its steady growth in population. The state’s population growth rate has fallen in the recent past. (Ballard, 2010). This seems reflected in its manufacturing and automobile industry sectors, as they have declined as well. This state seems to be losing population as the years go by, as opposed to gaining just as some of its competitor states are experiencing. The slower population growth rate has led to a decline in the share of population that Michigan has in the United States as a whole. This slower rate of population growth manifests itself in the now poor performance of Michigan with regard to economic issues.
Factors Considered being Critical
Dr. Bullard considers Michigan’s population trends as among the critical determinants of the state’s economic future. There is a trend of an increase in the aging population that ends up having certain significant implications on the policies in tax, pension, and healthcare. The uneven growth of population in different regions of Michigan tends to bring about uneven distribution and/or utilization of resources. The racial isolation and the decline in population within the Central Cities have greatly affected the state’s development (Ballard, 2010). The population of the Whites within its cities has decreased rapidly. The young have migrated to cities in other states other than Detroit, which is within Michigan. Michigan thereby ends up losing talent and creativity. The labor force is also another critical factor in which Michigan’s labor force has been observed to be gaining a rapid increase in the percentage of women as compared to men. Michigan’s labor force has also accounted for a greater number of the minorities that include the Hispanics and the African Americans. The last critical factor highlighted in this case is the attainment of education in the Michigan state. The attainment of education stands considered as a very essential factor in the determination of success within the labor market.
Reasons to Consider the Factors
With regard to the population trend, the old population within the Michigan state has been estimated to increase to 16 percent by the year 2020. This percentage is considered to be large thereby eating into the percentage of the productive group. This is critical, as the young people prefer to utilize their creativity and talents in other states other than Michigan. To consider it a safe place for everyone, the state needs to have the percentage of each race evenly distributed. This is not the case as only 13 percent of the people in its Detroit city are whites, and a large percentage of 81.6 are African Americans (Ballard, 2010). With regard to labor force, to realize more production, there had to be gender equality and Michigan did just this, as 47.1 percent of its labor force are women. This has also been affected in the education sector, as more women continue to attain degrees.
Michigan, in the 1980s as well as the 1990s was considered a rich state due to its industrial activities, as opposed to other states that majored in sectors such as agriculture. Its population growth rate also boosted the industrial activities, as labor was made available for the various industries within the state. Of late, however, Michigan seems to have been surpassed by other states within the U.S with regard to economic growth. This reality has largely been linked to the decline in the state’s industrial activities, as well as a large decline in the population growth rate of the state. The state hence, needs to come up with strategies that can entice investors to make large investments within it, to revive the industrial sector and improve the economic state of Michigan.
Ballard, C. L. (2010). Michigan’s economic future: A new look. East Lansing: Michigan State University Press.